Trump Says Fed’s Warsh Can Drive US Economy to 15% Growth
President Donald Trump stated that his choice to head the Federal Reserve has the potential to drive the economy to grow at a rate of 15 percent, a highly optimistic goal that highlights the significant pressure Kevin Warsh will encounter if he is confirmed for the position. In an interview, Trump remarked that Warsh was the “runner up” in his previous selection process and expressed that choosing Fed chair Jerome Powell was a significant error. Trump stated, “If Warsh ‘does the job that he’s capable’ of, then ‘we can grow at 15 per cent, I think more than that,’” during an interview with host Larry Kudlow in a clip aired Monday. “I believe he will excel, and he is truly an exceptional individual.” It remained uncertain whether Trump was alluding to year-over-year growth or another measure. The US economy is projected to expand by 2.4 percent this year, having grown at an average annual rate of 2.8 percent over the past fifty years. Since the 1950s, gross domestic product has only increased at a pace exceeding 15 percent on a few occasions, notably in the third quarter of 2020 when businesses began to reopen after pandemic-related closures.
During the search for a new chair, Trump expressed his desire for a candidate who would lower rates, later stating that he would not have chosen Warsh had he supported an increase in rates. The remarks indicate that Trump is wagering that Warsh, upon confirmation, can invigorate the economy in advance of midterm elections, which are traditionally challenging for US presidents. However, Warsh’s Senate confirmation could face delays, as Senator Thom Tillis, a retiring Republican from North Carolina, has vowed to obstruct any Fed confirmation while the Trump administration continues its Justice Department investigation into Powell and a Fed building renovation project. Kudlow asked Trump whether the DOJ investigation justified delaying Warsh’s nomination. “I don’t know, we’ll have to see what happens,” Trump stated. “I’ve been battling Tillis for quite some time, to the extent that he ultimately decided to step down.”
Trump, appearing unfazed by the possibility of a delay, remarked: “If it happens, it happens.” Trump’s comments in the interview indicate what may become a precarious balancing act for Warsh. His remarks imply that Trump is unconcerned about inflation, which would usually spike under growth rates approaching 15 percent and which has remained persistently high. Federal Reserve officials indicated a single interest-rate cut for 2026, based on the median estimate in projections released in December. However, investors continue to anticipate two reductions within this year. In a clip aired Monday, Trump stated, “It was former Treasury Secretary Steven Mnuchin who pushed to pick Powell.”
“My secretary of the Treasury wanted him so badly, so badly,” Trump stated regarding Powell. “And I didn’t feel good about him, but sometimes you listen to people and it was a mistake, it was really a big mistake.” Trump’s complete interview is set to be broadcast on Tuesday. Powell was reappointed under Joe Biden but has since become a target of Trump, who has heavily pushed for lower rates and broken from decades of precedent to raise questions about the independence of the Fed.
